The English club have taken action after the 25-year-old tested positive for a banned substance last month. A statement said: "We want to make clear that Chelsea has a zero tolerance policy towards drugs. This applies to both performance enhancing drugs or so-called 'recreational' drugs. They have no place at our club or in sport."
Chelsea said they were "considering all options in relation to any financial loss" and that their decision was independent of Football Association (FA) procedures. It is thought Mutu could face up to a two-year ban from football.
Support for FA
The statement added: "In coming to a decision on this case, Chelsea believed the club's social responsibility to its fans, players, employees and other stakeholders in football regarding drugs was more important than the major financial considerations to the company. Any player who takes drugs breaches his contract with the club as well as FA rules.
The club totally supports the FA in strong action on all drugs cases."
Mutu left Italian side Parma FC to join Chelsea for €22.4m in summer 2003. He made a bright start to his Premiership career but struggled to make an impact as the season wore on. He then made just two brief appearances for the club during the current campaign, although he has continued to feature for his country in FIFA World Cup qualifying.
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